q 0 125 250 375 500 625 750
C'(q) 27 35 41 45 43 46 51
Give fixed cost = 8800 and cost of producing 250 units is 17425, how much would the total cost increase if production were increased one unit, to 251 units?
To find how much the total cost would increase if production were increased one unit, we need to calculate the marginal cost at 250 units of production.
First, we need to find the equation that represents the total cost, given the information provided. We know that the fixed cost is $8800 and the cost of producing 250 units is $17425. We also have data for the marginal cost, which can help us find the equation for total cost.
From the given data, we have:
q: 0 125 250 375 500 625 750
C'(q): 27 35 41 45 43 46 51
The difference between the values of q is 125 units, and the difference between the values of C'(q) is the change in total cost for each 125 units.
Let's calculate the change in total cost for each 125 units:
Change in total cost for 125 units = C'(q) * 125
Change in total cost for 125 units = 27 * 125 = 3375
Change in total cost for 125 units = 35 * 125 = 4375
Change in total cost for 125 units = 41 * 125 = 5125
Change in total cost for 125 units = 45 * 125 = 5625
Change in total cost for 125 units = 43 * 125 = 5375
Change in total cost for 125 units = 46 * 125 = 5750
Change in total cost for 125 units = 51 * 125 = 6375
Now, we can calculate the total cost at the production level of 250 units:
Total Cost at 250 units = $17425
To find the total cost at 251 units of production, we can add the change in total cost for 125 units to the total cost at 250 units:
Total Cost at 250 units + Change in total cost for 125 units = Total Cost at 251 units
$17425 + $5125 = $22550
Therefore, the total cost would increase by $5125 if production were increased one unit, to 251 units.